Which is best for dropshippers: Instagram Shoutouts, or Facebook Ads for a dropshipping store?
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There are two popular types of traffic sources when dropshipping: Facebook ads, and Instagram shoutouts. Which one is best for dropshipping? Let’s take a look at the pros and cons of each.

One of the reasons that Facebook ads can be a challenge for beginners to make money with, is because of the issue of trust. You are trying to create ads and then place them in front of users who have never seen you before, never interacted with you and don’t know who you are. In addition, you are also asking them to hand over money to you, and to believe that if they give you money that they will get an item in return: all of this requires trust.

With Instagram shoutouts, you do not have the same issue of trust. Why? Because the Instagram influencer has already amassed trust by building up their audience. When they advertise your product, they are advertising it to a following that already knows who they are, have interacted with them and like them enough to follow.

WINNER: Instagram shoutouts

Which is the Cheapest for Beginners to Get Started?

With Facebook ads, you should be willing to spend at least $450-500 in start-up money. That is because you need to be willing to run a lot of ads before you find a winning product. We recommend being prepared to run at least 20 ads, and as each ad costs $20, that is $400 for the ads (and then the other $50-100 in set-up costs).

With Instagram Influencers, you can negotiate with smaller influencers that have 50,000-150,000 followers for prices between $10-20. You are also more likely to make sales along the way (as it’s easier to get conversions, since customers already trust the influencers).

WINNER: Instagram shoutouts

Which Makes the Most Money?

In the beginning with Facebook ads, your ROI is going to be very low. That is because when you run low-cost Facebook ads, they place your ad in front of low-value users. The reason why they do this is so that you don’t run out of ad spend quickly. In the beginning it can be very disheartening because you are lucky to break even or make a small profit on an ad.

But what you need to realize, is you aren’t running these ads to make a profit NOW: you’re running them to find products that have the potential to make large profits down the road when you place them in front of high value users after having scaled your ad spend up. With Facebook ads, because you can scale your ad budget, you can make millions of dollars. There is no way to scale like this with Instagram shoutouts. They are one-off purchases

WINNER: Facebook

Which Traffic Method is the Most Scalable?

We know the answer to this is Facebook. But it’s not just because of what we’ve already discussed (that ad budgets with Facebook can be scaled). It’s also because of the fact that on Instagram, you have a limited audience. It is not profitable to advertise to general Instagram stores because while there will be some people in the followers that are interested in your product, most people won’t be. You need to stick to niche-specific pages, and there are limited numbers of these.

With Facebook, once the pixel/algorithm has collected enough data about the types of visitors that purchase from you, it can start to bring in profitable traffic from GENERAL audiences. This is how you can reach so many people and scale massively.

WINNER: Facebook ads

Which Is the Easiest for Newbies to Use?

Setting up Facebook ads is quite technical. With Instagram shoutouts though, you use more “soft skills.” The process of finding good pages to advertise on is easy, and then it comes down to negotiating with the page. With Facebook you need to do lots of technical tasks like installing pixels, selecting targeting, clicking the right settings and even writing ad copy (usually the Instagram influencer does this for you). This is why beginners often find it easier to set up an influencer campaign.

WINNER: Instagram influencers

Which Is the Most Passive?

Instagram shoutouts require that you negotiate, plan out and organize ads for each week. With Facebook ads, once you’ve got a winning ad – there isn’t anything you need to do unless you want to. It’s good to do things like test products, test ad creatives and things like that – but the same goes for Instagram. You should always be testing. And it’s a LOT easier to test on Facebook than it is on Instagram.

WINNER: Facebook ads.

OVERALL: It is a tie! Ultimately neither is better than the other, they each have their own pros and cons.

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Hi Sarah. What would consider a winning ad? If you re not going to make any sales off of a 5 dollar a day budget, how do you know when to scale? what should your click-through rate and CPC be on Facebook before you know you are doing alright?!?